How to Buy Property in Costa Rica as a Foreigner: The Complete 2026 Guide

Costa Rica is one of the few countries in the world where foreigners enjoy the same property ownership rights as citizens. No special permits, no residency requirements, no restricted zones (with one exception we'll cover). For buyers from the United States, Canada, and Europe looking at the Nicoya Peninsula, this makes the purchase process remarkably straightforward — but there are still important steps you shouldn't skip.

This guide walks you through the entire buying process, from understanding your legal rights to handing over the keys.

Can Foreigners Really Own Property in Costa Rica?

Yes — and this surprises many first-time buyers. Costa Rica's constitution grants foreigners full property ownership rights identical to those of Costa Rican nationals. You can buy, sell, develop, and rent property in your own name without needing citizenship, residency, or a local partner.

The one exception is the Maritime Zone. Properties within 200 meters of the high-tide line along both coasts are government-owned. The first 50 meters is public land that cannot be developed. The next 150 meters can be leased through a concession, but only Costa Rican citizens or legal residents with at least five years of residency qualify. Many desirable beachfront properties on the Nicoya Peninsula — including parts of Santa Teresa, Mal Pais, and Montezuma — fall within this zone, so understanding where the boundary lies is essential before making an offer.

For properties outside the Maritime Zone, which includes the vast majority of hillside homes, jungle retreats, and inland lots across the peninsula, ownership is simple and unrestricted.

The Step-by-Step Buying Process

1. Define Your Goals and Budget

Before you start browsing listings, get clear on what you want. Are you looking for a vacation home, a rental investment property, or a permanent residence? The Nicoya Peninsula offers all three, and each town has a different character.

Santa Teresa attracts surf culture and digital nomads with strong short-term rental demand. Montezuma draws eco-conscious buyers who love waterfalls and bohemian charm. Mal Pais offers seclusion and luxury. Tambor provides a family-friendly environment with its calm bay and the peninsula's only commercial airport. Understanding these distinctions helps you focus your search and invest wisely.

2. Work with a Local Real Estate Agent

Costa Rica does not regulate real estate agents the way the United States or Canada does — there is no mandatory licensing exam or professional board. This makes choosing your agent carefully even more important. Look for an agent with deep local knowledge of the Nicoya Peninsula, a track record of completed transactions, and transparent communication.

A good agent will help you navigate everything from verifying property boundaries to understanding local building regulations. They will also connect you with the other professionals you need: a lawyer, a notary, and possibly a surveyor.

3. Hire a Costa Rican Attorney

This is non-negotiable. A bilingual Costa Rican attorney will conduct due diligence on any property you're considering. Their job includes verifying the title in the National Registry (Registro Nacional), confirming there are no liens or encumbrances, checking that property taxes are current, ensuring the property isn't in a protected zone, and reviewing the boundaries shown on the registered survey map (plano catastrado).

Your attorney should be independent from the seller's legal representation. Budget approximately $1,500 to $3,000 USD for legal fees, depending on the complexity of the transaction.

4. Make an Offer and Sign a Purchase Agreement

Once you've found the right property, your attorney will draft a purchase agreement (contrato de compra-venta). This document outlines the purchase price, payment terms, contingencies, and a closing timeline. Most agreements require a deposit — typically 10% of the purchase price — held in an escrow account.

Escrow services are available through Costa Rican banks and specialized escrow companies. Using escrow protects both buyer and seller. Never wire funds directly to a seller's personal account.

5. Complete Due Diligence

During the due diligence period (usually 30 to 60 days), your attorney verifies everything. This includes a title search going back at least 10 years, confirmation that the property has legal water and road access, a review of any existing concessions or easements, and verification with the local municipality that the property is properly zoned for your intended use.

If you plan to build, your attorney should also confirm that construction permits can be obtained and that the property complies with environmental regulations — particularly important on the Nicoya Peninsula, where many areas have biological corridor protections.

6. Close the Transaction

In Costa Rica, all real estate transfers must be executed through a public notary (notario público), who is always a licensed attorney with special notarial authority. The notary drafts the transfer deed (escritura de traspaso), both parties sign, and the notary records the transaction in the National Registry.

The entire closing can be completed remotely using a power of attorney if you cannot be present in Costa Rica. Your attorney can represent you with a properly executed and apostilled power of attorney document.

Understanding Closing Costs

Budget for closing costs of approximately 3.5% to 4.5% of the purchase price. Here is what that includes:

Transfer tax — 1.5% of the registered property value, split equally between buyer and seller by custom (though this is negotiable).

Registration fees — approximately 0.5% for recording the new deed in the National Registry.

Notary fees — typically 1% to 1.5% of the purchase price for drafting and executing the transfer deed.

Legal fees — $1,500 to $3,000 for your independent attorney's due diligence and representation.

Stamps and documentary taxes — small additional fees for fiscal stamps and document processing, usually a few hundred dollars.

There is no capital gains tax on property held for more than three years in Costa Rica, which makes it an attractive market for long-term investors.

Paying for Your Property

Most transactions in Costa Rica are conducted in US dollars, especially on the Nicoya Peninsula where the market is heavily international. You can pay via international wire transfer from your home bank directly to the escrow account.

Mortgages from Costa Rican banks are available to foreigners, though terms are less favorable than what you might be accustomed to at home — expect interest rates of 7% to 10% with a maximum loan-to-value ratio of around 70%. Many buyers finance through home equity lines of credit in their home country or negotiate seller financing, which is common in the Costa Rican market.

Annual Costs of Ownership

Property taxes in Costa Rica are remarkably low: just 0.25% of the registered value annually. A property registered at $300,000 USD would owe approximately $750 per year in property taxes.

If your property is used for luxury purposes and has a registered value above approximately $230,000 USD, an additional solidarity tax (impuesto solidario) applies at graduated rates. Even so, the total annual tax burden is significantly lower than in most US states or Canadian provinces.

Other ongoing costs include homeowner association fees if applicable (common in gated communities), property management if you are an absentee owner, insurance (not mandatory but strongly recommended — earthquake and flood coverage are important in this region), and routine maintenance in the tropical climate.

Do You Need Residency to Buy?

No. You can purchase, own, and rent out property in Costa Rica on a tourist visa. However, if you plan to live in the country for more than 90 days at a time, you will need to obtain legal residency. Common pathways include the Pensionado program for retirees (requiring $1,000/month in pension income), the Rentista program (requiring $2,500/month in investment income for two years), and the Inversionista program (requiring a $150,000 investment in Costa Rican real estate or business).

Residency is not required for ownership, but it does provide benefits: access to the national healthcare system (CAJA), the ability to open local bank accounts more easily, and the right to remain in the country without border runs.

Why the Nicoya Peninsula

The Nicoya Peninsula stands apart from other Costa Rican markets for several reasons. It is one of the world's five Blue Zones — regions where people consistently live past 100 years, attributed to diet, community, and an active outdoor lifestyle. Tourism is growing steadily, with strong year-round rental occupancy in areas like Santa Teresa and Montezuma. Infrastructure has improved dramatically in the past decade, with better roads, reliable internet, and expanding international flight access through Tambor airport and the new highway connections.

For investors, rental income potential is strong. Well-managed vacation rentals in Santa Teresa can generate 8% to 12% gross yields, and the market has shown consistent appreciation over the past five years.

Your Next Step

Buying property in Costa Rica as a foreigner is more accessible than most people expect. The legal framework is clear, ownership rights are strong, and the Nicoya Peninsula offers a combination of natural beauty, growing infrastructure, and solid investment fundamentals that is hard to find elsewhere.

The most important decision you'll make is choosing the right team — a knowledgeable local agent, an independent attorney, and a trusted notary. Get those right, and the process is smooth.

Ready to explore what's available? Browse current Nicoya Peninsula properties or contact our team to start your search.